Environmentally Friendly Management

To confirm pathway to achieve net zero emission by 2050, UMC has set science-based targets for emissions reduction pragmatically. In June 2022, it became the first semiconductor foundry globally to pass the Science Based Targets initiative (SBTi) validation review, marking an important step towards a sustainable vision.

The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute, and the World Wide Fund for Nature. It defines and promotes best practice in science-based target setting and independently assesses companies’ targets. At the end of 2021, UMC participated in the SBTi to evaluate its GHG reduction pathways. Based on its solid foundation of GHG inventory and the management performance, UMC was able to complete the validation process in less than six months from submitting the application to receiving SBTi’s approval. UMC demonstrated its determination to honor its climate pledge.

According to the reduction target approved by the SBTi, UMC’s total GHG emissions, including direct emissions (Scope 1) and indirect emissions from electricity consumption (Scope 2), will be reduced to 75% of its total GHG emissions in 2020 by 2030 (a reduction of 25%). The Company also aims to lower GHG emissions from its value chain (Scope 3) by 12.3% in the same period.

>> SBTi Official Website “COMPANIES TAKING ACTION”

According to the product carbon footprint and greenhouse gas emissions inventory results, the major contributor of UMC's product carbon footprint is manufacturing, with the major sources being electricity and fluorinated greenhouse gases (F-GHGs). UMC has thus formulated plans to reduce electricity consumption and F-GHG emissions in order to reduce its carbon footprint.

UMC established the F-GHGs Reduction Taskforce in 1999 to promote GHG reduction. Moreover, the company set GHG reduction goals for the various phases of the program, and currently, the reduction program is in Stage 3. UMC shall continue to implement F-GHGs reduction projects. UMC has continually conducted reduction measures such as installing a high performance local scrubber for N2O and F-GHGs in all new equipment, and utilizing NF3 gases in new CVD equipment. F-GHGs reduction in 2021 reached 0.917 million tons, compared to 2010, the F-GHGs emission per unit of wafer area (m2)reduced by 63% attaining the goal of 2021 for UMC Green 2025.

1. All new equipment shall be installed with a high performance local scrubber for N2O and F-GHGs.
2. All new CVD equipment in new facilities shall utilize NF3 gases

All UMC‘s 300mm fabs, including fabs of the subsidiaries, have adopted F-GHGs reduction practices. The total F-GHGs reduction rate for overall fabs has exceeded 75%, which is required by the Institute of Electrical and Electronics Engineers (IEEE) 1680.1: 2018 standard.

UMC's energy consumption mainly relies on purchased electricity, followed by a small amount of natural gas. The largest source of UMC's greenhouse gas emissions is from purchased electricity. Therefore, reducing energy consumption is the effective key to alleviate the environmental impact caused by the greenhouse effect. Through the CS Committee’s company-wide carbon reduction goals and development plans, coordinate/ integrate departmental energy saving and carbon reduction strategies and programs. Hold regular committee meetings to review the implementation outcome, and continue to introduce energy conservation technologies and implement energy efficiency improvement programs in relevant facilities.

To diversify energy sources, UMC is actively installing renewable energy facilities in fabs. Solar energy system is a standard item that will be included in the design and construction of all new fabs. UMC Group joined RE100 as a member, becoming the second semiconductor wafer foundry in this international renewable energy initiative. The Company is committed to using 100% renewable energy by 2050, and has set progressive mid-/long-term goals. UMC intends to support the low-carbon energy transition through solid actions.

In 2021, some older models of solar photovoltaic (PV) modules were replaced with high efficiency models, increasing power generation by 4.4 times. In total, a total of 2,161 kWh of solar PV system was installed, including replacement of old models. As of end-2021, UMC and its subsidiaries have completed the installation of over 6,300 kWp of solar energy, which is expected to generate up to 7,000 MWh of electricity each year. In 2021, UMC's solar photovoltaic system generated a total of 4,321 MWh (on-site), highest in the semiconductor foundry industry in Taiwan. In addition, UMC plans to add a total of roughly 2,000 kWp of solar photovoltaic systems in 2022, demonstrating the Company’s commitment to green energy.

Furthermore, UMC promotes energy saving programs in the office and public areas, accompanied with promotional activities and training to enhance employees' ideas and habits in energy saving and greenhouse gas reduction.